GST Effect- KTM Decreases Prices of Its Sub 350cc Bikes

Bajaj Auto has declared the passing of GST benefits to its customers by reducing the ex-showroom prices of its sub-350cc KTM motorbikes, namely the KTM 200 Duke, RC 200, and 250 Duke, effective July 1st, 2017. Depending on the state where the bike is purchased from, the price reduction is up to the tune of Rs.8, 600 post the implementation of the Goods and Service Tax. Under the new GST reform, the taxation rate has been revised from 30 per cent to 28 per cent for bikes with engine displacement of less than 350cc.

However, the taxation rate of bikes of 350cc and above now stands at 31 per cent as opposed to 30 per cent before the GST came into effect. Despite the increased taxation value, the reduction in the prices of KTM RC 390 and 390 Duke is up to Rs.5, 900, differing from state to state. In Maharashtra, the ex-showroom price of the KTM RC 390 is slashed by Rs.5, 301 and the ex-showroom price of the KTM 390 Duke is down by Rs.5, 205. However, in Delhi, the KTM 390 Duke and the RC 390 have now become dearer by around Rs.3,000. It must be noted that even though the prices of most bikes have fallen in most states when compared to the prices pre-GST, the on-road prices have increased by a slight margin due to the hike in RTO and insurance charges.